What year was Social Security moved from the trust fund to the General fund?

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2026-04-15 13:30

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It never was. The way the funds were accounted for changed in 1969, but the funds from the Social Security trust have never been moved into the general fund. The practice of accounting for the funds reverted back in 1990.

The social security funds have NEVER been moved into the general fund. In 1968/69 the trust fund was added as item accounted for in the budget, but it was not made part of the general fund nor available for anything other than social security. This practice was eventually phased out in 1990.

Another item that has caused confusion for some people is the way the funds are invested. Again though, the trust is not made part of the general fund and is guaranteed by the Fed, and redeemable at any time at face value: "By law, income to the trust funds must be invested, on a daily basis, in securities guaranteed as to both principal and interest by the Federal government. All securities held by the trust funds are "special issues" of the United States Treasury. Such securities are available only to the trust funds.

In the past, the trust funds have held marketable Treasury securities, which are available to the general public. Unlike marketable securities, special issues can be redeemed at any time at face value. Marketable securities are subject to the forces of the open market and may suffer a loss, or enjoy a gain, if sold before maturity. Investment in special issues gives the trust funds the same flexibility as holding cash."

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